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Consider the following data, which applies to Avataria and Twilightia in the years 1990 and 2010. In both countries the production function in per worker terms is:
y = A(k)^1/2(h)^1/2.
Country; Year; Output per worker, y; Physical capital per worker, k; Human capital per worker, h
Avataria: 1990; 50; 5; 125
2010; 400; 60; 375
Twilightia: 1990; 25; 8; 128
2010; 300; 48; 768
(a) What were the productivity levels in each country in 1990 and 2010?
(b) Which country had higher annual factor accumulation growth rate between 1990 and 2010? (Calculate these rates.)
(c) Which country had higher annual productivity growth rate between 1990 and 2010? (Calculate these rates.)
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